Q: Would my father be responsible for Capital Gains tax if he were to sell his House?
My dad owns his house in Cupertino, it was reappraised after my mom passed a little over a year ago for 2.5 million. If he were to sell it today for say 3.0 million, would he need to pay Capital Gains? I was under the impression, that from the 2.5 appraisal and 250K exclusion for my dad and 250k for my mother, if my dad sold his house at the 3 million he would not need to pay the Cap Gains. Is that correct?
A:
Tax questions are very complex and a public forum such as this is not the place to find an answer to rely on. You need to take all the information and documents to a tax attorney or tax accountant for an opinion. There is also something called a 1031 exchange, which you can transfer the excess equity to the purchase of a new residence. But you need to consult a tax attorney about all of this. I don't think your calculations are correct.
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Zaher Fallahi agrees with this answer
A:
This is an important matter with a large amount, and I would consult a tax attorney for a specific advice. I hope this helps. Good luck. Zaher Fallahi, Esq, CPA (CA &D.C.).
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